Purpose of this coverage

For years I have heard that many foreign investments had entered into China to tap its huge potential market. At the time when I heard the story about making one dollar from selling to the billions of people in China then we can be billionaires I didn’t quite visualise how the China I know fit into the story. From the places I have visited in China, I could still see that the average wage is $USD100-$USD200 per month. I not talking about the very rural area but the places like Shenzhen and Shanghai. So I was wondering how do foreign corporation make moneys from these people when they don’t have the money. I hope to paint a picture for those who like to know the real China vs the China story.

Within the last few years, the Chinese Stock market soars like it never did before. Companies report huge earnings growth. At the time of this writing, it is Christmas 2007. The Chinese stock market is below 20% from its peak. Chinese stock market is face with fear of the US recession, credit crunch from the US subprime problem, record high inflation in China, the Chinese government’s monetary policy to dampen the economy and not to mention fear of Chinese stock & housing market bubble. Some people including Asia’s Warren Buffett (Mr Li Shau Kee) still believes in the Long Bull Market and told people that he had bought $HKD10Billion worth of Shenhua, Cnooc, China Life, CMB, China Overseas and the HKEX. I have followed his advise and bought some too. I have read all these companies’ financial report like a good investor do. While I am in China, I have been observing the some changes. So I can write a few words about these sectors to try to bring some life to these sectors’ research report. See if there are any hypes …..

I have also added a section on Geely auto because I bought some shares on Geely based on pure technical analysis. Then the stock fell eventhough the new low is higher then the previous low. I think we have all seen this kind of result from trading purely from a technical point of view. Because of my affinity with Geely auto. I have kept my eyes open and noticed that there aren’t too many Geely car in the street. So I decide to write a section on the auto industry to show the things I have seen and compare it with the financial report